Circular

Respected Sirs,
Peace be upon you, God's mercy and blessings.

Subject: Allowing the Saudi Real Estate Refinance Company to purchase residential mortgage portfolios from real estate financiers after a period of no less than one month from the date of granting financing related to those assets, with recourse against the financier for a period of six months from the date of granting financing.

In continuation of Saudi Central Bank Circular No. (611/08/99) dated 13/10/1440H, which allows the Saudi Real Estate Refinance Company to purchase residential mortgage portfolios from real estate financiers after a period of no less than three months from the date of granting financing related to those assets or three months from the date of receiving the first installment from the beneficiary, whichever is later, with recourse against the financier for a period of six months from the date of granting financing.

The Saudi Central Bank wishes to inform that, based on its supervisory and regulatory role over financing entities; it has been decided to allow the Saudi Real Estate Refinance Company to purchase residential mortgage portfolios from real estate financiers after a period of no less than one month from the date of granting financing related to those assets, or one month from the date of receiving the first installment from the beneficiary, whichever is later, with recourse against the financier for a period of six months from the date of granting financing.

For your information and compliance effective as of its date. Al-Eissa

Yours sincerely,

Yousef bin Ahmed Al-Sheikh
Deputy Governor for Supervision

Distribution Scope:

Banks and operating subsidiaries in the Kingdom.
Financing companies operating in the Kingdom.
The Saudi Real Estate Refinance Company.

P.O Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000 P.O. Box: 2992 Riyadh 11169 Kingdom of Saudi Arabia Phone: +966 11 463 3000